Shinsegae department store sets sales record as foreigners splurge in Gangnam
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Shinsegae Department Store, one of South Korea’s leading retailers, said Tuesday that its outlet in Gangnam, an affluent area in southern Seoul, reported 2 trillion won (US$1.7 billion) in accumulated sales last year.
It marks the first time for a single-department store branch to achieve the 2 trillion won milestone, the company said.
Lotte Department Store, another leading player, earlier said its branch in Myeongdong in downtown Seoul generated 1.8 trillion won in sales last year.
Shinsegae attributed its stellar performance to increased visits by foreign shoppers as its Gangnam outlet is adjacent to a number of five-star hotels, including the JW Marriott Gangnam.
Most of the top-buying foreign shoppers were from China, Taiwan and Russia, the company said.
The store also underwent major remodeling in 2016, in a move to provide a better luxurious in-store shopping experience by organizing items based on themes rather than brands.
The country’s three major players — Lotte, Hyundai and Shinsegae — account for about 80 percent of the sector’s sales in the country.
Questions & Answers
Q.What is the key factor Shinsegae attributes to its record sales performance?
What is the key factor Shinsegae attributes to its record sales performance?
Shinsegae attributes its strong sales to a significant increase in visits from foreign shoppers. Its Gangnam outlet's proximity to several five-star hotels also contributed to this influx of international customers.
Q.Which specific groups of foreign shoppers contributed most to the sales record?
Which specific groups of foreign shoppers contributed most to the sales record?
The highest-spending foreign shoppers were identified as originating from China, Taiwan, and Russia. These nationalities were key contributors to the record-breaking accumulated sales figure.
Q.How did Shinsegae try to enhance the customer experience at its Gangnam store?
How did Shinsegae try to enhance the customer experience at its Gangnam store?
The store underwent major remodeling in 2016 to improve the luxurious shopping experience. This involved organising items by themes instead of traditional brand-based displays, aiming for a more curated approach.
Q.What percentage of the South Korean department store market do the three largest retailers control?
What percentage of the South Korean department store market do the three largest retailers control?
Lotte, Hyundai, and Shinsegae, the three major players in South Korea's department store sector, collectively account for approximately 80 percent of the total sales within the country.
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